Why are prices soaring when buyers have enjoyed a very small increase in income?
The Nightly Business Report notes that prices are skyrocketing and buying consumers should hold on to their wallets.
I am personally done buying and am so lucky to have a real nice 2 bedroom, 2 bath condo totally paid off with just taxes and condo fees to pay ($700 per month, hey, I live in New Jersey, goddamn it)
But I am hearing horror stories of “bid wars” occurring again much like the pre-Great Recession period.
My friend is trying to buy in one of the most prestigious towns in southern NJ and he bid $395,000. Home sold the next day for $420,000.
This is happening all over.
So my question is who are the Wall Street Whore mortgage lenders that are accepting these much higher appraisals and lending to people who are in over their heads?
Where is Dodd-Frank to control this insanity?
It’s the haves versus the have nots all over again.
What’s happening is that the monied people are taking their gains out of the Trump stock market to plop down on a new house.
Instead of accepting an FHA buyer (only 3.5 % down) sellers are taking the higher offers of the capital gains recipients which equates to a much smaller mortgage (20% down).
So the excess money of the stock market is chasing too few houses in the real estate market and thus driving prices out of reach of the 47%ers.
The appraisal industry has their hands tied and will only appraise the home at comparable value. But if a buyer wants to pay more they plop down more cash to get the deal done.
The banks and mortgage companies are following the rules; the price increases are fueled by lack of inventory and the very slick wealth transfer technique used by the Republican Administration to move tax revenues directly to the rich and powerful.
You do understand what I am saying here right?
Trump massively cut taxes which put more money in the rich pockets (and an additional $1000 in my pocket I might add) and devastated, decimated and destroyed the deficit for this year (now over $1 trillion) and the debt (heading to $21 trillion and beyond).
So although we have more we have effectively borrowed it from our National Credit Card for this year and forever.
Do you really think that the tax cuts will generate enough economic activity to pay for themselves let alone help reduce the debt and deficit?
We got fooled once Mr. Raygun. Fool me once, fool me twice…..bend over and fool me thrice!
The more insidious and blatant policies we initiate the more the masses are going to move to socialism. Especially the young people.
The young people are like California. Both are on the cutting edge of societal evolution.
Look at us youngins’ in the late ‘60’s and early ‘70’s. Who was protesting the war like crazy? It was a stupid war and a total waste.
And it will be the young people today who will reign in this wealth transfer scam which only moves upward and never has and never will “trickle down.”
Watch November 2018.